Bay Networks Delivers First DOCSIS-Based Head End and Cable Modems to MediaOne.

SANTA CLARA, Calif.--(BUSINESS WIRE)--June 10, 1998--

--MediaOne to Begin Trials on Versalar CMTS 

1000 and Versalar CM 100--

Bay Networks(R), Inc. (NYSE:BAY) today announced that it has delivered for testing its first MCNS-DOCSIS (Multimedia Cable Network Systems - Data Over Cable Service Interface Specification) -based Cable Modem Termination System (CMTS) and Cable Modems (CM) to one of the nation's leading Broadband services companies, MediaOne. MediaOne will begin testing the newly branded Bay Networks Versalar CMTS 1000 and Versalar CM 100 products in preparation for deployment in the fourth quarter of calendar year 1998.

"We are pleased to be working closely with Bay Networks on the field testing of their DOCSIS-based Versalar products and we look forward to future field deployment," said Stephen Van Beaver, vice president of Operations and Engineering at MediaOne. "Bay Networks' significant contribution to DOCSIS will enable us to leverage the standard as we go forward."

The eventual certification of the new DOCSIS specification will enable MediaOne to deliver revenue generating Business Class IP Services to their customers. The Versalar family of Broadband products is strategically positioned to deliver these new and innovative services because of their ability to handle the high-bandwidth and provisioning demands associated with Virtual Private Networking, Directory/Policy Services, Voice / Fax over IP, Progressive Traffic Management, and Security.

"Bay Networks recognizes the crucial role our Versalar products will play in MediaOne's strategy for delivering Business Class Services over IP to its customers," said Karl May, vice president and general manager of the Broadband Technology Division. "This understanding of MediaOne's needs allows us to deliver the highest caliber products and services to market quickly, keeping MediaOne ahead of the competition."

The DOCSIS interoperability program is an open effort to design and to specify interconnection points for cable modems that has been supported by Bay Networks since its inception 2-1/2 years ago. This endeavor is driven by CableLabs, the research and development arm of the Multimedia Cable Networks System, LTD (MCNS). MCNS is a consortium of cable television system operators representing the North and South American continents.

About Bay Networks Broadband Services

With more than 165,000 cable modems deployed around the world and over 3 million homes passed, Bay Networks is establishing a trend that allows a growing number of companies and individuals to access the internet more quickly, easily and securely than many other solutions. As MSO's begin to provide their customers with new services such as Internet access, video-conferencing and telecommuting applications, Bay Networks' commitment to advancing this industry is evident, having emerged as the market leader in providing access solutions to this technology.

Bay Networks offers MSOs a cable modem that has an open scalable architecture ideal for small, medium and large networks. With a maximum of 10Mbps, Bay Networks' cable modems allow end users to work at a speed 50 times faster than conventional dial-up 28.8Kbps or even faster than 56K technology, commonly used in networks today.

About MediaOne

MediaOne is the nation's leading Broadband services company, providing entertainment, information, and communications services to more than 5.1 million customers in 17 states. MediaOne Group (NYSE: UMG), formerly U S WEST Media Group, one of America's largest broadband communications companies, is involved in domestic and international cable and telephone services, international wireless, and directory and information services. For 1997, the group had proportionate revenue of $7.8 billion, pro forma for the AirTouch merger. MediaOne Group is one of two major groups owned by parent company U S WEST, Inc. The other major group is U S WEST Communications, which provides telecommunications services in 14 Western and Midwestern states. U S WEST plans to split the two groups into separate public companies. The split is anticipated by mid-June.

Bay Networks - Where Information Flows

Bay Networks, Inc. (NYSE:BAY) is a leader in the worldwide networking market, providing a complete line of products that serve corporate enterprises, service providers and telecommunications carriers. The company offers frame and ATM switches, routers, shared media, remote and Internet access solutions, IP services and network management applications, all integrated by Bay Networks' Adaptive Networking strategy. With headquarters in Santa Clara, California, Bay Networks markets its products and services around the world, providing 7x24 support coverage. For additional information visit the company's World Wide Web site at http://www.baynetworks.com or call 800-8-BAYNET.

This release, other than historical financial information, may consist of forward-looking statements that involve risks and uncertainties. These statements may differ materially from actual future events or results. For instance, factors which could cause results to differ from future events include the rate of adoption of new technology, competitive pricing actions and marketing programs, among others. Readers are referred to the documents filed by Bay Networks with the S.E.C., specifically the most recent reports on forms 10-K and 10-Q, which identify important risk factors which could cause actual results to differ from those contained in the forward-looking statements.

Bay Networks and Versalar are registered trademarks of Bay Networks, Inc. Other brand and product names are registered trademarks or trademarks of their respective holders.

CONTACT: Bay Networks, Inc. FitzGerald Communications, Inc.

Don Gross Allen Reitz

210/979-2155 617/494-9500 Ext. 268

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